Lesson Learned: Sometimes Paying Zero Is Still Too Much for Student Debtors

As we have discussed in prior blog posts, The Battle of the Student Loan Discharge, The Eternal Pursuit to Collect: Due Process Rights and Actions to Collect on a Debtor’s Defaulted Student Loans

Filed under:
USA, Insolvency & Restructuring, Litigation, Public, Weil Gotshal & Manges LLP, Bankruptcy, Credit (finance), Debtor, Interest, Debt, Due process, Balance sheet, Undue hardship, Student loan, Bankruptcy discharge, US Department of Education, Eighth Circuit, United States bankruptcy court
Location:
USA
Firm:
Weil Gotshal & Manges LLP
High court rules against student-loan creditor but demands strict guidelines in future for student-loan discharge in bankruptcy

A recent defeat by a student-loan creditor could turn out to be a victory for the industry overall.

On March 23, 2010, the United States Supreme Court decided an important case concerning a student-loan creditor’s motion to void a bankruptcy court’s judgment.1 The creditor brought this motion after initiating collection efforts and in response to the debtor’s request to cease and desist those efforts.

Filed under:
USA, Banking, Insolvency & Restructuring, Litigation, Frost Brown Todd LLP, Bankruptcy, Debtor, Due process, Cease and desist, Undue hardship, Student loan, Capital punishment, Bankruptcy discharge, Supreme Court of the United States, United States bankruptcy court
Location:
USA
Firm:
Frost Brown Todd LLP